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Archive for the ‘News’ Category

Thought bubbles from the crowd

Monday, March 7th, 2011

Our conference in New York last week created quite a buzz.  We had 1,578 attendees, two-thirds of whom watched via live streaming.  I think that must be some sort of record.

In the spirit of the Internet, rather than trying to be one of those pompous “thought leaders,” I thought I’d let the attendees furnish the highlights.  I’ve distilled more than 400 Twitter comments into a few dozen that seemed the most poignant.  Their 140-character thought bubbles appeared as they listened to more than 50 presenters.  (To see all of the comments, go to www.twitter.com and search #loac2011.  To sort through them, add the speaker’s name or a topic after the hashtag, such as “#loac2011 Christensen,” “#loac2011 hyperlocal” or “#loac2011 mobile.”

I’ve classified them into four categories:  Innovation & Media Strategy, Mobile, Hyperlocal, and Companies.

Innovation & Media Strategy

  • “These traditional media panelists saying right things.  I’m skeptical about their ability to execute and actually create change.”
  • “Shelly Palmer:  Nobody is going to get a raise by innovating. We get paid by making our numbers. At the heart of the local media prob.”
  • “Even the most efficient dinosaur is still extinct: Prather”
  • “There is no such thing as breaking news on the 5 o’clock news anymore. Somebody broke the news from an iPhone 4 hours ago: Bob Prather”
  • “Recurring message: Digital media must have its own separate business unit to survive.”
  • “Leveraging business models of past is foolish…need to understand the job to be done and build new ones…Clay Christensen.”
  • “Business models evolve; business units don’t:  Clay Christensen.”
  • “Big companies survive biz disruption by setting up a separate biz unit, giving it a charter to kill the parent.”
  • “Convergence is difficult to implement at best, and in a lot of ways a myth:  Gordon Borrell”
  • “Promotions now disrupting advertising according to Borrell. Represent 59.7% of all marketing dollars today.”
  • “Distuptive innovations: Big guys more toward highest profit. Little guys nibble at the niches until there is no whole piece left.”
  • “Today’s consumer really doesn’t care about the media company.  They just get what they want and move on.”
  • “Media is becoming a platform for specific audiences, not just content aggregated and pushed out for all to sort through.”
  • “Powerful point:  Shelly Palmer said you don’t need a website, you need a database.”
  • “Love this line from Shelly Palmer: Kids consider email a formal letter.”

Mobile

  • “Check-ins are very low on the mobile totem pole.”
  • “Almost half of all mobile phone/Internet use occurs at home.”
  • “17% of mobile users have shown a clerk in-store a picture of a product on their phone.”
  • “Mobile CTRs up to 20x more on HopStop mobile vs. website.”
  • “Don’t let crappy ads ruin your mobile site.  It teaches users to ignore ads, says Greg Stuart”
  • “2010-2020 is the decade of mobile:  Ben Wood, Google”
  • “75% of marketers say they will increase spending on mobile in 2011.”
  • “1.5 billion computers, but 1.8 billion smartphones.”
  • “Ben Wood, Google: Local is at the heart of user search.  1 in 5 searches have local intent. 1/3 mobile searches have local intent.”
  • “Mobile is very likely the missing piece for local. Local online advertising seems antiquated at this point.”

Hyperlocal

  • “Warren Webster says investing in qualified journalists will set Patch apart with hyperlocal.”
  • “Rick Blair says a low-cost operations model sets Examiner.com apart from newspaper models.”
  • “Wow.  Examiner.com – 243 markets, 70k contributors, 3k articles/day, 25MM monthly uniques, 75MM monthly pageviews.”
  • “Advertising vs. promotions:  Patch seems to be leaning towards promotions.”
  • “Webster:  Patch hired more professional journalists in 2010 than any other media entity.”
  • “Gilbert: If all you do is write for print, you are not a good journalist. Amen!”
  • “Shelly Palmer:  There is no such thing as hyperlocal, only hyperpersonal.  I don’t care about location, I care about ME.”

Companies

  • “David Krantz at AT&T Interactive:  Print $3 billion and shrinking; interactive $1 billion and growing.”
  • “Ouch.  Chip Perry:  76% of media dollars being spent on media that are driving 8% of car sales.”
  • “Heath Clarke of Local.com says self-serve subscription model didn’t make enough money.”
  • “Michael Golden: NYT regional publishers disagree on whether to institute online paywall.”
  • “Michael Golden says NY Times wants to be the shopping mall.”
  • “Local Mazda dealership tracked 100 sales to a Facebook check-in deal over a period of a few weeks.”
  • “Miller: Groupon used to be all about the transactions.  Now we focus heavily on the relationships.”
  • “Patch has acquired Outside.in.  The two CEOs share the stage at the Borrell conference.”
  • “Yahoo email login page brand takeover ad unit will be locally targeted next month.  This could be powerful local branding ad.”

Lots of great thoughts there!  If you missed the conference, don’t worry.  We videotaped the live stream and will make it available until April 5.  To see it, go to www.borrellassociates.com/loac2011/onlineticket.php.

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About that report on Web traffic…

Friday, February 18th, 2011

Some days you’re the dog, some days the fire hydrant.   This week it’s the latter.

In case you hadn’t noticed, our recent report on the size of local website traffic threw a curveball into the online media industry.  One of our own clients accused us of “hand grenade tossing.”  The comments on blogs and articles haven’t been very Valentines-ish.   Click here or here to jump in and offer your own gut-kick, or pull some of the hyenas off us, whichever you feel is appropriate.

This type of reaction isn’t new. We often release research that takes people by surprise.  Most people love research that supports their theories and hate research that might shed a bad light on it.  We’ve issued similar “bad news” research for the newspaper, yellow pages and direct mail industries and received snarky comments every time.

We embrace research that gives the media industry actionable insights.  This particular report fit the bill perfectly.  So we put on the flak jacket and published it.

The report, “How Unique Is Unique:  Gauging the (Actual) Size of Web Traffic,” detailed how many actual people were visiting local websites, as opposed to what the entire industry continues to use – unique visitor counts. We believe that’s misleading, and we further believe everybody agrees with us.  The report also detailed how 30% or more of a typical local site’s traffic doesn’t live in the market, and that a large flock of visitors tend to be what we call fly-bys – people who might visit once every six or 12 months.

Unfortunately, a few of the news articles gave the report a very negative spin.  I used to be a newspaper headline writer and understand how five or six words above the story can jade someone before he or she reads the first sentence.  In one case, the headline read, “Local website traffic neither large nor loyal.”  In addition to being negative, it was flat wrong.

One revelation in particular spurred us to write this report.  It was a big opportunity that we wanted to uncover for smart people in the industry.  The opportunity stems from the fact that local businesses increasingly feel that they are being duped by advertising.  They are besieged by sales pitches regarding the Internet and have grown skeptical of the claims.

The first person who comes to them and says, “Let me tell you the truth about unique visitors and help demystify online advertising for you,” is the person who’s going to begin stealing business away from boastful competitors.  As the last line of the Executive Summary says, “That form of education builds trust, and trust is one of the most important components of advertising sales.”

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Albritton’s Misfire: ‘The TV Guys Have Won.’

Thursday, February 10th, 2011

I hate to make a case study of one company’s misfire, but Albritton Communications recently did the exact wrong for a company to do in this age of digital innovation. It put responsibility for the evolution of a “communications” company in the hands of “television” managers.

The issue is one that many local media companies struggle with:  Who should control the website – the legacy media managers, or hired entrepreneurs?  It’s something we’ll debate next month at our conference in New York, employing the foremost authority on the issue – Clay Christensen of Harvard Business School, and follow up with a real-world example from Clark Gilbert, the CEO at Deseret Media (KSL-TV) who has put entrepreneurs squarely in control and has produced stunning results.

Blogger and digital news analyst Terry Heaton from AR&D brought the Albritton story to my attention this week. Here is a reprint of his recent blog on Albritton’s action.

By Terry Heaton, AR&D

“ According to reports out of Washington, Albritton Communications is transferring control of its experimental news start-up, TBD.com, back to its TV station in the market, WJLA-TV, where GM and News Director Bill Lord will now be in charge. The news was not unexpected. In December, TBD GM Jim Brady quit suddenly over differences with senior Albritton executives, primarily the direction of the site and noted at the time that his biggest burden while running the site was fighting with “the TV guys.” As Jay Rosen tweeted today, the TV guys have won.

(more…)

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